Sangu production fall hits Ctg industries
Monday, 10 December 2007
M Azizur Rahman
Fall in production at the country's lone offshore - Sangu - gas field is hampering industrial production in the country's Chittagong region, sources said.
Gas production from Sangu dropped Sunday to 58 million cubic feet per day (mmcfd), lowest in its history. This is almost one-third of its average daily production of 172 mmcfd recorded during 2006.
Petrobangla sources said pressure at the Sangu gas field is declining, which has resulted in poor gas supply to the country's Southeastern Chittagong region.
"Businesses in Chittagong are now suffering because of the shortage in gas supply along with frequent disruptions in electricity generation," Chittagong Chamber of Commerce and Industries (CCCI) president Saifuzzaman Chowdhury Javed told the FE Sunday.
He said production in all types of industries, including steel, re-rolling, glass sheet, cement, garment and textiles, are being hampered due to inadequate supply gas and electricity.
The Energy and Mineral Resources Division (EMRD) has stopped giving new gas connection to the gas-based industries and the captive-power plants, which will squeeze industrial growth, the CCCI president feared.
There is a fear that the Sangu gas field will dry up completely by the next four years as gas production from this field is dwindling alarmingly.
Scottish Cairn Energy - the operator of Sangu gas field - has already given up hope of further gas production following an unsuccessful month-long drilling there in last winter.
Gas production from Sangu gas field will decline by 20 mmcfd EMRD sources said quoting the Cairn Energy analysis on the offshore gas field.
When contacted Petrobangla chairman Jalal Ahmed also acknowledged the problem saying the gas supply situation in Chittagong region might not improve in the next three years.
"The main cause for the gas supply crisis in the Chittagong region is the declining gas production from Sangu and inadequate infrastructure to transfer gas from country's other areas to Chittagong," he said.
"We are not being able to bring gas to Chittagong from the country's northern region where gas production is reasonable," he said.
The Petrobangla has planned to set up several compressors over the next three years to get the Chittagong's regional gas pipeline connected with the national gas grid, the Petrobangla chairman added.
Gas discovery and subsequent production from offshore Megnama gas field, now being explored by Cairn Energy, might improve gas production in Chittagong region in future, Jalal Ahmed said.
Sources feared that if gas supply to Chittagong region was not improved the production in a significant number of key installations like Karnaphuli Fertiliser Company (Kafco), Chittagong Urea Fertiliser Limited (CUFL), Shikalbaha Power Plant, Rauzan Power Plant and a barge-mounted power plant in the port city will be badly affected.
Fall in production at the country's lone offshore - Sangu - gas field is hampering industrial production in the country's Chittagong region, sources said.
Gas production from Sangu dropped Sunday to 58 million cubic feet per day (mmcfd), lowest in its history. This is almost one-third of its average daily production of 172 mmcfd recorded during 2006.
Petrobangla sources said pressure at the Sangu gas field is declining, which has resulted in poor gas supply to the country's Southeastern Chittagong region.
"Businesses in Chittagong are now suffering because of the shortage in gas supply along with frequent disruptions in electricity generation," Chittagong Chamber of Commerce and Industries (CCCI) president Saifuzzaman Chowdhury Javed told the FE Sunday.
He said production in all types of industries, including steel, re-rolling, glass sheet, cement, garment and textiles, are being hampered due to inadequate supply gas and electricity.
The Energy and Mineral Resources Division (EMRD) has stopped giving new gas connection to the gas-based industries and the captive-power plants, which will squeeze industrial growth, the CCCI president feared.
There is a fear that the Sangu gas field will dry up completely by the next four years as gas production from this field is dwindling alarmingly.
Scottish Cairn Energy - the operator of Sangu gas field - has already given up hope of further gas production following an unsuccessful month-long drilling there in last winter.
Gas production from Sangu gas field will decline by 20 mmcfd EMRD sources said quoting the Cairn Energy analysis on the offshore gas field.
When contacted Petrobangla chairman Jalal Ahmed also acknowledged the problem saying the gas supply situation in Chittagong region might not improve in the next three years.
"The main cause for the gas supply crisis in the Chittagong region is the declining gas production from Sangu and inadequate infrastructure to transfer gas from country's other areas to Chittagong," he said.
"We are not being able to bring gas to Chittagong from the country's northern region where gas production is reasonable," he said.
The Petrobangla has planned to set up several compressors over the next three years to get the Chittagong's regional gas pipeline connected with the national gas grid, the Petrobangla chairman added.
Gas discovery and subsequent production from offshore Megnama gas field, now being explored by Cairn Energy, might improve gas production in Chittagong region in future, Jalal Ahmed said.
Sources feared that if gas supply to Chittagong region was not improved the production in a significant number of key installations like Karnaphuli Fertiliser Company (Kafco), Chittagong Urea Fertiliser Limited (CUFL), Shikalbaha Power Plant, Rauzan Power Plant and a barge-mounted power plant in the port city will be badly affected.